Raymond James cuts rating on WideOpenWest after lack of upside into deal (NYSE:WOW)

Raymond James has downgraded shares of WideOpenWest (NYSE:WOW) to “Underperform” from “Market Perform,” citing a lack of upside from the joint offer made by Crestview Partners and DigitalBridge (DBRG) to buy the broadband provider.
Early in May, WideOpenWest (WOW) received a buyout proposal at $4.80 per Class A share from the parties.
“The shares are trading above the offer price, and while we cannot rule it out, we are skeptical that there will be a topping bid. We believe there are some hidden costs for the buyer for capex and other upgrades to legacy properties that likely depresses the multiple… we see limited upside from current levels and better relative opportunities elsewhere in our coverage,” Raymond James analysts wrote in a July 2 report.
WOW -2.9% at $5.10, stock is up nearly 26% YTD.